FXStreet (Delhi) – Research Team at Societe Generale, notes that the EUR/USD pair is retracing after achieving first hurdle at 1.1060/85. Key Quotes “EUR/USD faced first resistance at our advocated level of 1.1060/85 and the pair has drifted towards graphical support at 1.08 which also corresponds with the 50% retracement of recent recovery. Weekly indicator still languishes in negative territory and below its trigger level which suggests upside is likely to remain capped. 1.0980 is an immediate resistance while only a move above 1.1060/85 will mean possibility of further recovery.” “In such a scenario descending channel limit at 1.1170 will be next resistance. Short term, a down move looks more plausible. A break below 1.08 will lead to test of next retracement levels at 1.0730 and even 1.0650.” “Violation of flag led EUR/USD towards previous lows and more importantly multi decadal channel at 1.05/1.04. This remains a decisive level for extension in ongoing downtrend. Short term, the pair has achieved initial target for recovery near 1.1085. Upside appears to be capped; flag limit at 1.1270 should contain it.” For more information, read our latest forex news.